New York-based King Penguin Opportunity Fund reached an agreement with Union Real Estate Co. to acquire the 19-story Allegheny Building in downtown Pittsburgh.

According to the Pittsburgh Business Times, the transaction, for which a closing date has yet to be determined, will mark the company’s second real estate investment in the city’s downtown.

Now considered a Class C office property, the 150,000-square-foot office tower at 429 Forbes Ave. dates back to the early 20th century, when it was built as an expansion to the neighboring Frick Building.

Rich Beynon, president of downtown-based Beynon & Co., represented the property at a listing price of $7.8 million, or about $53 per square foot.

“We are pleased to have come to an agreeable purchase price,” Beynon told the newspaper when asked about the value of the transaction. He added that King Penguin is likely to maintain the building’s office use.

According to Mike Ligouri, a vice president who specializes in investment sales for Hanna Langholz Wilson Ellis, the property benefits from the apartment conversion trend underway in the city’s downtown.

“As multifamily takes over some of the B and C buildings, an asset like this becomes more stable because of less competition,” Ligouri said.

Just a few months ago, King Penguin entered the Pittsburgh real estate market with the purchase of the historic 25-story Lawyers Building at 428 Forbes Ave., just across the street from Allegheny Building. The 120,000-square-foot class C office property, also formerly owned by Union Real Estate, sold for approximately $4.5 million.

Both buildings have been designed by D.H. Burnham & Co., the Chicago firm led by renowned architect Daniel Burnham, who is known for his work on important buildings in New York, Washington, D.C., and Chicago.